The DOW: The rally since early March has almost reached its 200-day moving average. That could be a possible target for the rally to end.
The S&P 500: has virtually reached reached its 200-day moving average.
The Nasdaq has risen slightly above its 200-day moving average.
A time for caution? I think so, yes indeed. I dont see anything implying a devestating setback is about to occur. But this flirting with the 200-day moving average is not exactly a message from the Angels. Since the Bear market began,the Nasdaq composite has touched the 200-day moving average three times and has been turned back each time. This is now the fourth touch.
The S&P 500 has only touched the 200-day MA once and been repelld. This would be touch no 2. Same for the DOW.
For all four major averages,the current rally has retraced a higher percentage of the preceeding weakness than achiebed by any rally so farin this bear market.
That suggests a market that has been expecting good news according to Don Worden (www.worden.com)